AI regulation push a 'dangerous' bid for oligopoly: Joe Lonsdale

Palantir co-founder Joe Lonsdale criticised OpenAI and Anthropic, calling their push for stricter AI regulation a 'dangerous' bid to create an oligopoly. He warned this could allow a few dominant firms to dictate policy and entrench market power.

Efforts by leading artificial intelligence firms to highlight existential risks from the technology amount to a dangerous bid to shape public policy, according to Joe Lonsdale, an investor in Anthropic and co-founder of Palantir. Speaking at the Reuters Momentum AI Austin event, Lonsdale criticised moves by figures close to Anthropic and OpenAI to fund third-party groups that lobby for stricter industry rules. He stated that such measures risk creating an environment where a small circle of dominant developers dictates oversight to entrench existing market power, Reuters reported.

"I think that what OpenAI and Anthropic are pushing right now is very dangerous, and we don't want an oligopoly that controls all of our policy here with the government," Lonsdale said. "Safety is a real thing, but fear and regulation — we've got to be really careful how we respond to those things," he said.

The remarks arrive as industry executives, including Anthropic chief Dario Amodei, OpenAI head Sam Altman, and SpaceX leader Elon Musk, urge top developers to moderate the pace of building advanced systems, warning that inadequate safeguards could create severe hazards for humanity.

Despite his critique of the broader regulatory campaign, the 8VC founder noted that Anthropic possesses exceptional talent and stands as an industry leader. "It's very hard for anyone to second-guess the highest-performing company in the world over the last few years," Lonsdale said. "I'm proud to be an investor in Anthropic."

AI and Modern Warfare

Beyond software regulation, Lonsdale addressed modern warfare, pointing out that businesses backed by his firm, including defense developer Anduril, see direct commercial ties emerging from battlefield adaptations in Ukraine. "We're partnering very closely with them. A lot of our companies work with their companies," Lonsdale said. "A lot of our companies are likely to buy some of the companies over there," he said.

Human Accountability in Autonomous Systems

Turning to autonomous weapons systems, Lonsdale stated that ultimate accountability must rest with human military command rather than automated platforms, particularly amid controversies surrounding targeting failures in modern conflicts. "There's always a person responsible who is in charge of whatever system they studied, worked on and approved," Lonsdale said. "It's very easy from the outside to judge these things when you're not there in the fog of war," he said.

Focus on Business Amid Pentagon Speculation

While named in discussions regarding senior roles within the Pentagon during an ongoing leadership reshuffle, Lonsdale noted that his immediate focus remains directed toward his commercial enterprises and private life. "Obviously, if a President calls you and asks something of you, you should consider it. But my focus right now is on building my businesses and my community," he said.

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